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Can I have multiple lenders work on same contract?

New Contributor

Can I have multiple lenders work on same contract?

Is it possible to have multiple lenders work towards closing the same loan at the same time?  We have not locked with our lender yet and our file was conditionally approved last week.  We fulfillled the conditions and sent the package back to underwriting, but the wait to hear back from the underwriter on the conditions is keeps getting pushed back due to heavy loan volume.  Another lender that preapproved us and has in house underwriting wants a shot at closing our loan.  


Is it possible to let the second lender submit a loan application with all of the conditions the first one received while we are waiting to here from underwriting on the first?  Our thought is whoever is able to close this first, gets it.  We don't want to risk losing the house or paying the seller concessions for delays in underwriting that could have been avoided.




Message 1 of 5
Valued Contributor

Re: Can I have multiple lenders work on same contract?

While waiting needs patience signing a new application and not notifying other lender can bite you in the rear.

You would have to disclose all information including your open application with another lender. If you do not disclose this information it can and most likely would be considered mortgage fraud.

Another consideration is what one UW wants for conditions may not be what a different underwriter wants for conditions.

The biggest question to ask yourself is do you like working for FREE! Cancelling your first application means that everyone who worked on your loan has did it for no compensation.

While that is your right to cancel and comes with the business, in my opinion it is morally wrong unless you feel they have done nothing to help you.

The choice to cancel is up to you ultimately but at this stage of the game would probably take longer to close with a new loan application submitted.

Just my 3 cents of an opinion.

Good Luck
May all your dreams and wishes become a reality!
Message 2 of 5
New Contributor

Re: Can I have multiple lenders work on same contract?

Thanks.  Both lenders have known about each other from the begining during the pre approval process, and I just found out that we would need to cancel one before starting the other, so my original question was answered.


As for working for free, it was the thing that made us stick it out with the first lender early on when we started seeing signs of delays.  Our realtor wanted us to switch then, but we felt that "moral" obligation of staying with our original loan officer.


This week that decision bit us in the butt and we missed our closing date.  The loan officer didn't send in things when I expected and was led to believe and didn't notify me of a problem until I started pushing on why things we not done yet.


At this point we're probably going to stay the course and just try to stay on top of things better.  We will be at risk of losing this contract with our seller if we cannot close by the end of the year.

Message 3 of 5
Valued Contributor

Re: Can I have multiple lenders work on same contract?

Im sorry you are having so much trouble.

Wish I was able to make you feel more at ease but the process is frustrating for many.

This industry thrives on referrals, just remember no recommendations for that LO or broker.

Good luck I still believe since Im a positive thinker you will close in time.
Good Luck
May all your dreams and wishes become a reality!
Message 4 of 5
Moderator Emeritus

Re: Can I have multiple lenders work on same contract?

I think that this is a matter of opinion and debate. I had shopped pre-approvals prior to making an offer. I had apps out with the following companies:

Lender A

Lender B

Lender C

Lender D


Lender A denied me, I got pre-approvals with Lender B, Lender C and Lender D.


I put an offer in using the pre-approval letter from Lender B.   Lender B denied me during underwriting.


Moved forward with Lender C, in the meantime, my realtor encouraged me to apply with Lender E, who was handling the loan for the seller's new house. Lender E denied. Lender C took 4 months to underwrite my loan, and I had multiple hoops to jump through.


It wasn't Lender A, B, C, or E's fault that my file was so darn complicated.


Lender C never gave up, in the end, the loan officer for Lender C, and his supervisor got fired. The branch manager handled my loan from then on out. My file kept coming back Refer / elligible or Approved / Refer ... Refer means, refer to Manual Underwriting standards. Lender C ended up having the MI company manually underwrite my entire loan.

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Message 5 of 5